Sometimes the key to success in life is just showing up and doing what you’re told. If you want proof, look no further than racing game developer Motorsport Games (NASDAQ:MSGM). Motorsport Games stock was up over 700% at one point in Tuesday afternoon trading.
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Back in November, Motorsport Games told Nasdaq that it was no longer following Nasdaq Listing Rule 5550(a)(4), nor was it following Nasdaq Listing Rule 5605(b)(1). The former requires a company to have a minimum of 500,000 publicly held shares. The latter, meanwhile, requires that a company’s board of directors be made up of independent directors, or at least a majority of members should be independent.
Motorsport Games fixed these two issues with two points. The first was by offering a set of class A stock shares to Alumni Capital. The purchase agreement from Alumni put Motorsport Gaming back over 500,000 total shares, bringing it in compliance with the applicable rule. The second was by bringing in two new independent directors for the board. With that, the company was back to full compliance, and the market greeted it like a conquering hero.
Looking at the last five days in trading, Motorsport Games clearly picked up its own checkered flag. Share prices were largely flat and trending slightly downward. Then the news hit this morning about Nasdaq rule compliance, and it was once more off to the races. The stock actually gave back some of its gains with the afternoon trading. However, it was still fairly close to its peak for the day.
